Media OutReach<\/a>\u00a0– 23 June 2021 -
\nThe leading international sportswear brand enterprise in the PRC, China
\nDongxiang (Group) Co<\/b>.,<\/b> Ltd<\/b>. (“China Dongxiang” or “the
\nCompany”, together with its subsidiaries, “the Group”, HKEx stock
\ncode: 3818), announces its annual results for the twelve months ended 31 March
\n2021 (the “Reporting Period”). The Group’s revenue reached\u00a0RMB1,970 million for the Reporting Period, representing
\na growth of 27.8% year-on-year
\n(yoy). Profit attributable to owners of
\nthe Company was RMB1,811 million, representing an increase of 394.8% yoy.
\nBasic earnings per share increased by 394.1% yoy to RMB30.88 cents. The Board of
\nDirectors has proposed to distribute <\/b>35% of the profit attributable to owners of the
\nCompany for the twelve months ended 31 March 2021 as full-year dividend.<\/p>\n
\n
\n
\n
<\/p>\n
Operational <\/b>Highlights <\/b><\/p>\n
\n
<\/p>\n
\u00a0<\/b><\/p>\n
\n
<\/p>\n
Intensive
\ncultivation focusing on China market<\/b><\/p>\n
\n
<\/p>\n
During the Reporting Period, domestic consumer sentiments gradually
\nimproved as the pandemic has come under control, accelerating the growth of new
\ntrend in online purchasing. The Group seized the opportunities with the
\nimplementation of delicacy operation in three dimensions of big logistics, retail
\nlocalization and product sales, strengthening management of localized sales
\nteams, driving digitalization of the omni-channel and uplifting the
\nprofessional competence of product management teams. It further speeded up
\ninventory turnover of omni-channel, enhanced channel control and swiftly
\nresponded to market, bringing great improvement in operational efficiency.
\nDuring the Reporting Period, the Group reported stable growth in the
\nperformance of outlet stores and shopping malls. As at 31 March 2021, the Group
\nhad a total of 1,170 Kappa stores (excluding Kappa Kid’s stores), representing a
\nnet increase of 41 stores as compared to last year.<\/p>\n
\n
<\/p>\n
Delivering brand
\nconnotation by focusing on minority sports activities<\/b><\/p>\n
\n
<\/p>\n
In terms of brand marketing, the Group continued its cross-sector collaboration
\nwith IP and celebrities, incorporating latest trends and cultural ideas into
\nthe brand, delivering the brand spirit of “Never Settling for the Mediocre;
\nNever Compromise”. This included the Halloween AI Series in collaboration with
\nyoung domestic artist Cao Yu (\u66f9\u7fbd);
\nteamed up with Mak Ling Ling, a well-known Feng Shui master in Hong Kong, to
\nlaunch the 2021 CNY “Kappa Fortune” series, increasing its brand exposure. The
\nGroup will swift its brand focus back to sports and target the younger
\ngeneration as its customer group. Focusing on niche and high-end sports, the
\nGroup partnered with Chinese Equestrian Team, National Fencing Team and
\nSkateboarding Team to open up opportunities arising in middle- to high-end sports
\nmarket segment.<\/p>\n
\n
<\/p>\n
\u00a0<\/p>\n
\n
<\/p>\n
Embracing the new
\nera with ongoing digitalized omni-channel model<\/b><\/p>\n
\n
<\/p>\n
With the pandemic gradually recovering and reviving customer traffic,
\nthe Group’s digitalization and omni-channel reform has become evident. During
\nthe Reporting Period,
\nthe Group’s e-commerce has achieved stable growth, with
\ndigitalization and omni-channel operation
\nremained as its strategic focus. In addition to maintaining its competitiveness on
\nmainstream platforms, the brand also actively
\nexplored new emerging platforms, such as
\nXiaohongshu, Pinduoduo and Douyin, demonstrating the Group’s versatile marketing strategies of
\ntargeting younger customer groups. On
\nthe other hand, the Group optimized its SCRM membership system, cloud storage and smart
\nstore system to facilitate the integration of omni-channel. E-commerce business recorded a 31.7% growth for the full year.<\/p>\n
\n
<\/p>\n
To better focus on its business in China market, subsequent to the
\ndisposal of the trademark of “Kappa” Japan in July 2020, the Group also decided to license the “Phenix” brand to franchised
\noperators. This allows the Group to dedicate all of its resources and marketing efforts to
\nthe development of its core brand in China market.<\/p>\n
\n
<\/p>\n
Investment segment
\nperforms well with diversified portfolios to spread risk<\/b><\/p>\n
\n
<\/p>\n
During the Reporting Period, the Group reported a net asset value of RMB10,518 million for its investment segment, representing
\ngrowth of 10.1% as compared to the same period last year, with investment gains
\namounted to RMB2,095 million. In the future, the Group believes that investment
\nsegment will generate stable and sustainable return for shareholders with
\nprudent investment strategies and outstanding investment partners.<\/p>\n
\n
<\/p>\n
\u00a0<\/p>\n
\n
<\/p>\n
Mr. Chen Yihong, Chairman and Executive Director of China Dongxiang,<\/b> said, “The pandemic
\nbrought enormous challenges to the industry, but also presented unprecedented
\nopportunities to sportswear brands in China. The post-pandemic change in
\nconsumption preference has indirectly driven the demand for sportswear
\nproducts. The Group successfully navigated the situation with the brand spirit
\nof innovation and “Not Settling for the Mediocre”, achieving fruitful results.
\nLooking forward, the Group is fully confident in the prospects of China’s
\neconomy and sportswear industry. With a number of international sporting events
\ncoming up, the Group will seize the market opportunities ahead, striving to
\nachieve record-high results. The Group will continue to take profitability at
\nthe core, and collaborate with outstanding partners in quality projects with a
\nglobal vision, generating stable and sustainable returns for our shareholders.”<\/p>\n<\/p><\/div>\n\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Direct Franchised
Reform Bears Fruit
Overall Business
Achieved Healthy and Stable Development
\u00a0
Results\u00a0Highlights
(RMB million)
For the twelve months ended 31 March
FY2021
FY2020
Change
Revenue
1,970 …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60],"tags":[],"_links":{"self":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/15750"}],"collection":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/comments?post=15750"}],"version-history":[{"count":0,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/15750\/revisions"}],"wp:attachment":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media?parent=15750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/categories?post=15750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/tags?post=15750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}